Re Slips To 35.83-84, Forwards Steady

FOREX REPORT

The spot rupee slipped sharply against the dollar in the face of demand from oil majors in the inter-bank forex market yesterday. It touched an intra-day low of 35.87 before recovering to close at 35.83-84.

Forward premiums remained steady with the six month closing at 4.34 per cent and the one year at 4.31 per cent.

The spot rupee opened at 35.805-815. There was demand from the State Bank of India and the Bank of Baroda who purchased $70 million for the Oil and Natural Gas Corporation.

The rupee slipped to 35.87 by afternoon. However, after the banks withdrew, the rupee regained some lost ground and climbed to the closing levels.

The forward premiums remained soft as receiving pressure continued to outweigh paying pressure. Monthly premiums in paise were 3-5 for June, 11-14 for July, 23-26 for August, 39-42 for September, 55-58 for October, 69-70 for November, 84-87 for December, 98-103 for January, 112-117 for February, 127-132 for March, 145-150 for April, and 159-164 for May.

Overseas, following statements of senior officials from the Bank of Japan in favour of a dollar-yen parity at 120 yen per dollar, the dollar gained substantially against the yen.

The rupee also weakened against the Japanese currency to close at 31 per 100 yen. It closed at 58.30 against the pound, 20.8 against the mark.